The AUD is currently in a bullish trend against the FJD, benefiting from rising commodity prices and a weakened USD.
Key drivers include the anticipated interest rate hike from the Reserve Bank of Australia (RBA), expected to enhance the AUD's attractiveness compared to the FJD. The Fijian economy is facing challenges due to US tariffs on Fijian goods, impacting export revenues. Additionally, a revised economic growth forecast from the IMF indicates slowing growth in Fiji, further weighing on the FJD.
In the near term, the AUD/FJD exchange rate is likely to remain within a stable range, above its recent average as it trades with some volatility. Upside risk for the AUD could stem from stronger-than-expected commodity prices, while downside risk may arise from heightened geopolitical tensions impacting risk sentiment. This combination suggests ongoing fluctuations in the exchange rate as global conditions evolve.